Companies typically provide insurance options for their employees, such as workers' compensation or health care insurance. In some cases, a company may self-insure, and in other cases the company may use a third-party insurance company. In an effort to reduce medical costs, an insurance company may offer one or more preferred provider organizations (“PPO”). A PPO may comprise medical doctors, hospitals, and other health care providers who have contracted with an insurer or a third-party administrator to provide health care services at reduced rates to clients of the insurer or third-party administrator. A health care provider may be associated with one or more PPOs. An insured may receive a discount for a medical service by selecting a participating health care provider. PPOs may be confined to one or more states or geographic regions, and may also contract with other PPOs. PPO administrators may use their bargaining power to negotiate a plurality of favorable terms with participating health care providers. As a result, PPOs may provide members with a discount below the regularly charged rates of the participating health care provider.
Discounts provided by each PPO may vary based on the size of the network, its location, medical services, efficiency, etc. Furthermore, a client may realize more or less discounts based on the types of services rendered to the insured via the PPO, the discounts on those services, etc. Due to the abundance of diverse PPOs, it is a challenge for a client or insurance company to accurately determine which PPO or group of PPOs will provide them with optimum benefits.